Global property consultancy firm, Knight Frank India, on Thursday said prices in the residential property segment are likely to decline in a short time. “We feel prices of residential segment may go down over a period of time,” Knight Frank India Chairman Pranay Vakil told reporters here today. The residential segment may see a robust demand in certain markets, he said, adding that it was also a good time for property developers to invest in land.

Demand for real estate at this stage is a combination of investor-led demand and end-user demand. While investor demand is due to shift in money from equity markets, end-user demand is due to increased consumer confidence and pent-up unmet demand from the recession period. This leads to a rapid increase in demand for real estate and a corresponding increase in property prices, he said. Today, property buyers are worried that prices may go down after they purchase property and projects may not be completed on time, Vakil said.

Knight Frank today launched a book titled Real Investment-a real estate investment guide for India. The book seeks to lend a helping hand by covering all the information that one may require while investing in real estate. The book compiles the perspectives of real estate industry experts to help deepen knowledge about real estate and consider it as an asset class. Commenting on the book launch, Vakil said, as property advisors, we continuously work with some of the best minds in the sector. We felt the need for a single credible source of information, for which we brought together the best minds in the business. This book makes the seemingly daunting task of delving into the real estate market simpler by offering tips on how to make real estate a lucrative investment option.”
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  • OMR still costly

    Just Recently, I verified the prices for the apartments around OMR starting Thiruvanmiyur to Kelambakkam.
    I did not find any apartment with 1100 (2BHK) less than 50 Lakhs.

    I'm not sure if the prices have come down in Chennai esp in OMR.
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  • you can take a person out of chennai but cant take 'chennai' out of a person

    Originally Posted by logix




    Chennai prices rising day & night while rest of India not selling? i can't comprehend this. NCR has the best infrastructure in India - visit Gurgaon & Greater NOIDA once & you will never want to go back to Chennai if you like US/UK like housing & infrastructure.

    When they are not selling despite having Manesar & Sona road like investment zones declared by Haryana govt. then how can Chennai keep selling unabated?

    .


    Chennai sells becoz

    1)it is still cheaper compared to other metros(land)

    2)it is on a growth curve with many new industries making their footprint

    3)availaibility of both skilled and unskilled labour

    4)it is a very calm place no civil unrests

    5) no land mafia till date and no 'hafta' collections

    6)lots of abstracts involved.

    7)comprises of a conservative population which is culturally more inclined towards chennai's lifestyle.and which is growing.

    8)more migrations from rest of tamilnadu which is also doing extremely well
    the sucessfull have always wanted to own a place in chennai.(abstract)
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  • Inner city has a reason for high prices ...

    Originally Posted by Almighty
    Simple question..How accurate are those attachments? If I remember right Nabhishek had pasted these earlier this year. Have the values changed, do they get updated? Finally I am not bothered about some freak data that can say anything, and Wiseman who claimed to know TA will know that this is a lag indicator. The lead indicator on the ground shows desperation to buy. Infact the bears on this forum and in general should be thanked for checking euphoria or the upmove in the past 5 months would have been phenomenal. I for one am happy as for me I seem to be nearing the time when I can swap property for property across states, but as for Wiseman and his RK Salai property, I think unrealistic prices in the old CITY are no longer worth it. Remember prices in city centre will go up lesser than the developed cum developing portion and the newly developing portions will only spurt up and down till they are in developing state. So RK Salai will never go up in percentage times like Mogappair or Saligramam or Palavakkam. Cheers.



    Almighty,

    You are full of questions and doubts about others' data and charts. Instead of trying to create your own brand of confusion, how about you trying to do some amount of work and research and put down some of your own data instead of trying to put down the data produced by Abk, others and myself? Maybe getting off your butt and doing some research might give some credence to your confusion-mongering?

    You say that bears have sought to dampen the market otherwise it would have risen phenomenally. Please see the attached chart which will show you that, as of 24th Dec, the markets have in fact been blown out of proportions by the bulls such as yourself. Specifically, the Real Estate Sectoral P/E has risen to an astronomical 55 times current earnings. And the RE companies are going to cream the bulls such as you with IPO offerings at these prices and good luck to you!!! And you are expecting people like us to become suckers just because you might have bought property at high prices and are hoping against hope that they will rise under these circumstances of high supply and low demand, not to mention tightening money supply and impending interest rate increases? Good luck to you again!!!

    Lastly, it is high grade infrastructure, proximity to CBD and a long, steady growth in calue that will see Central areas retain high value over time to come. That is why, South Bombay, MG Road in Bangalore, Central Chennai and suchlike places will fall least in times of distress and still have siginficant liquidity (dude, when we dropped price from 2.5 to 2.3 crores per ground, ee had over 50 prospective buyers with 100% cash in the bank within 1 week; show me that kind of interest in OMR?). Sure, the returns will not be like buying farmland for 500 and seeing it go to 2000. But then, for every 3 plots you buy in different areas, 1 will fail (33% failure rate) and over a 20 year period, CAGR will come down to earth and taper down to 13% - 15%, which is what we got over the last several decades in Central Chennai.

    Please don't think you have struck upon some magic formula that most of us have missed. I've been buying property for last nearly 30 years and have done all the calculations you have and seen all the phenomenal rises you have (and probably more).

    More importantly, we have seen some really punishing bear markets you probably have not. Which is why we like to be cautious and wait patiently for the great opportunities serious distress brings so that our investments will be much safer, more profitable and more liquid. While the eager youngsters who have not seen serious bear markets buy too early and high and suffer so that they learn to be a little wiser when a little older.

    Anything wrong with being a little wiser and a little safer?:D:D:D

    cheers
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  • Remembered a little late ... Welcome back Nats!

    Nats (or Almighty in current Avatar),

    Welcome back. Hope this time around you will keep a lid on your vocabulary in deference to your IIT background.

    Your views are always welcome!:D

    cheers

    PS - Sorry for taking off on you in previous post!!!
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  • There are many such places in India

    Originally Posted by abk
    Chennai sells becoz

    1)it is still cheaper compared to other metros(land)

    2)it is on a growth curve with many new industries making their footprint

    3)availaibility of both skilled and unskilled labour

    4)it is a very calm place no civil unrests

    5) no land mafia till date and no 'hafta' collections

    6)lots of abstracts involved.

    7)comprises of a conservative population which is culturally more inclined towards chennai's lifestyle.and which is growing.

    8)more migrations from rest of tamilnadu which is also doing extremely well
    the sucessfull have always wanted to own a place in chennai.(abstract)


    Uttaranchal is still cheaper, proximity to NCR, even calmer & better than Chennai, has a natural environment unparalleled to any other country in world.

    New industries making their footprint is one thing that i can comprehend but other factors are true about many other cities of India.

    Chennai selling without check when other Indian cities with better infra & weather are stagnant is something difficult to understand.

    Cities like Pune have witnessed influx from other parts of India because food & weather are not that big a problem but with Chennai i believe it can be a problem (although i have been just told this), my cousin Hyderabad working for a financial firm is getting 50% hike in current Sal. but is unwilling to move to Chennai due to food & weather.

    Although i want to appreciate that Chennai is one of the places that India can be proud of because people have retained culture & ethnicity & traditional south Indian Veg. food on a banana leaf can be very tempting, same for Coimbatore :).

    In south i have visited only Hyd, & B'lore for a very brief time. I have known people from Coimbatore - with Iyer surname, they are simply good people to be with & i am thankful of their company.

    I am just wondering, will all the world's IT business come to India in some years? the amount of IT office space & IT parks make me think so.

    IT may not become single point of failure (if at all) for India, although it seems that in near future at least there is no threat for India.

    I would recommend reading that double dip is not something being discussed only in this forum, may other forums are discussing it & warning of second crash.

    Moreover guys an important pointer for all - Carwale.com has started new section of possessed cars on their site - that ICICI is getting from its customers, this tells something about credit bubble too?

    They contacted me regarding this & i definitely believe that they are certainly facing NPAs with such business.
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  • Originally Posted by wiseman
    Nats (or Almighty in current Avatar),

    Welcome back. Hope this time around you will keep a lid on your vocabulary in deference to your IIT background.

    Your views are always welcome!:D

    cheers

    PS - Sorry for taking off on you in previous post!!!

    Shame on you. Back to your old methods, talking about property stocks and using that to evaluate property! Not noting down the data I present and instead asking for imaginary ones! Not talking sane, by repeating what I said and trying to say as if you said it and as if I did not (I am not talking about OMR and well if you reduced price from 2.5c to 2.3c and got buyers why the hell wont you sell...as usual foolish statements!... and you claim market will fall).
    Just keeping a name will not make you worthy of it! I have no time to waste on you, and I notice there are atleast half a dozen waiting to choke your breath, from Economist to Bear baiter.
    Finally the unkindest cut of all, YOU SAID THAT I AM CONTRADICTING ABK's DATA. Seems like you want to sow some poison between the two of us.
    You are atbest a politician unfit to write here. I dont need your invitation and certainly I dont think I will invite you to any sane forum!
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  • You cant help it Economist. That one member's agenda is, has and will be the same. Infact you must be happy he is not using his old coterie to browbeat others. Think of it. Two articles in The Hindu today stating
    a. IT job market on the rise again and
    b. Promising outlook for realestate industry
    wont matter to that person because Wiseman is a honourable man!
    Unfortunately as you rightly said, the market cares not for such honourable men and is dishonouring them by moving up. Infact I stated in an earlier thread (as natarajg007) to folks that if they sell their land to cash out, nobody can save them. What a pity those who sold this year? In 2011 they will be crying as the price would have atleast doubled very conservatively from the price they must have sold in 2009 early part.
    We cant help the insects that swarm the tubelight. THey are born to die with or without Tubelights or Wiselights. So let the discussion continue with his dissenting views.
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  • Originally Posted by REUser
    Just Recently, I verified the prices for the apartments around OMR starting Thiruvanmiyur to Kelambakkam.
    I did not find any apartment with 1100 (2BHK) less than 50 Lakhs.

    I'm not sure if the prices have come down in Chennai esp in OMR.

    I suspect you should check out with Wiseman if he can get you an apartment for Rs50L-. He will most likely in your/his dreams. LOL!
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  • Originally Posted by Almighty
    You cant help it Economist. That one member's agenda is, has and will be the same. Infact you must be happy he is not using his old coterie to browbeat others. Think of it. Two articles in The Hindu today stating
    a. IT job market on the rise again and
    b. Promising outlook for realestate industry
    wont matter to that person because Wiseman is a honourable man!
    Unfortunately as you rightly said, the market cares not for such honourable men and is dishonouring them by moving up. Infact I stated in an earlier thread (as natarajg007) to folks that if they sell their land to cash out, nobody can save them. What a pity those who sold this year? In 2011 they will be crying as the price would have atleast doubled very conservatively from the price they must have sold in 2009 early part.
    We cant help the insects that swarm the tubelight. THey are born to die with or without Tubelights or Wiselights. So let the discussion continue with his dissenting views.

    Looks like Wise has not read this! Hope he does and gets sombre in the new year! Cheers.
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  • Another report from KF which warns buyers from investing in projects at this price points since buyers can get favorable situation if they hold their decisions during this economic turmoil by few more years, they can really benefit in the impending crash which is all but certain if this trend continues.

    Mumbai's property market is getting worse: 10 things you need to know | Firstpost
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  • Their reports are like weather reports
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  • Most builders are hoping to sell their over priced flats to NRIs and those from North or West India where real estate is far far more expensive than Chennai. For these people these over priced flats will appear dirt cheap compared to over there, so even if there is a crash they will still find buyers amongst this crowd
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  • In any case if it helps me to buy an apartment inside city (Ashok Nagar, KK Nagar, Adyar etc) then its well and good

    For the past 10 years I'm trying to buy an apartment in these areas but when my salary increase 10%, real estate price increase by min 30% so finally it became a dream :(
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  • Good luck visanj, but can you tell me what is the asking price in Indu housing Velachery project.
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  • Originally Posted by chennaidesi
    Good luck visanj, but can you tell me what is the asking price in Indu housing Velachery project.


    I don't remember exactly but it was around 7500
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